Employment-Oriented Private Sector Promotion (Sustainable Economic Development)

For the Ghanaian Government, economic growth driven by the private sector is the main key to reducing poverty. The Government’s private sector development strategies concentrate on creating a favourable investment climate and on strengthening the competitiveness of Ghana’s businesses, which largely consist of micro, small and medium-sized enterprises (MSME).

Besides severe infrastructural weaknesses (in energy, transport, telecommunications), the following deficits in particular obstruct the development of Ghana’s private sector:

• Inadequate level of organisation and efficiency amongst stakeholders, promotional institutions and service providers that aim to develop the economy
• Cumbersome public administration structures, which are highly bureaucratic and susceptible to corruption 
• Insufficient legal security in terms of ownership, land and insolvency law, which impacts negatively on access to financial resources 
• Insufficiently developed financial systems. MSMEs have no access to financial services .

GTZ's activities in this area help to remedy these structural weaknesses and build capacities for the benefit of MSME development. This is done in close collaboration with the partner on national level (i.e business associations, ministries) and through advice provided on decentralised level (i.e. District Assemblies). The partner is enabled to recognize and remove investment obstructionist rules and regulations and thus to improve the business- and investment climate. These support measures are imbedded in a framework that emphasizes stakeholder participation and public-private dialog.

GTZ’s assistance furthermore includes advice on improving MSMEs’ access to financial services and strengthening of banks and other (micro) finance institutions, especially in the rural areas. GTZ also supports the development of a market for entrepreneurial services by promoting the development and marketing of innovative products.

GTZ’s services are performed within the framework of the Sustainable Development Programme.